Agera Business Lounge – Fin-tail management – 4

Fin-tail management – 4

Another fish has shown up – from behind. Shit! Competitor approaching!

Now it is a matter of knowing one’s own products, the competitor’s products and both our sales forces’ effectiveness.

Competitors’ products vs Own products.

Own products as well as the competitors’ products are nowadays often pretty equal, which in its turn leads to even higher demands on the sales people’s competence, rapidness and services. Of course, there are situations where completely different products compete by solving the same need. (electrical shaving vs. manual shaving).

Sales competence.

In the past when supply and demand were in balance no one or at least very few demands were asked of the sales – orders arrived anyway. Today, when the supply by far exceeds the demand the pressure on the sales is constantly and rapidly growing.

A superior product is no longer enough to guarantee a success. No, it takes a superior sales force as well to secure the success. To have such a sales force is a necessity and thereby a challenge for all executives! Money is constantly being invested in developing the sales people’s effectiveness and thereby improving their achievements and by doing so also securing the company’s long term profitable survival.

To have an outstanding sales effectiveness is not a matter of one single effort. No, it is a matter of constant searching for excellence in the persons’ behavior, in the organization and in its tools.

In the picture above one fish is coming up behind the other. In reality many fishes are coming up from behind! So, if you don’t look out, you may soon be just another anonymous fish in the crowd – shouting DISCOUNT!

Chapter 4 has only been out for a few hours on a Saturday afternoon and you have already a very relevant question. Thank you! It deserves a quick answer.
Yes, I do believe there is a certain difference between discounting one’s products or investing in sales effectiveness in the company for three reasons:
1) Discounting as such is a defensive weapon, while improved sales efficiency is an aggressive weapon.
2) By doing one or the other you send signals throughout the company about your philosophy
3) Apart from that is discounting a pure cost while investing in improved sales efficiency is a pure investment, which in the long run is supposed to pay off.
Now enjoy your weekend and welcome back for further discussion! Peter

Thank you for posting this sharp, instructive and up to date insights.

This made me wondering if there even exist superior products! Tesla? Gillette? Swish? Western Union?
I would gladly hear your opinion regarding this Peter.

Furthermore, can this be a good time for the sale force to develop and new offer/approaches in cooperation with the rest of the company?
An example can be to offer a complete solution instead of just a product. This have been successful for both Scania and Skanska if I am not mistaken.